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Merger with the manufacturer KMW: Rheinmetall takes up the Leopard 2 tank



"Leopard 2" tank on the way to NATO training in Norway.(Photo: photo alliance / dpa)

Monday 26 November 2018

The stock company Rheinmetall has long been interested in the Leopard 2 tank manufacturer, KMW. Now for the first time there is a debate about possible participation. After all, it decides to another, does the merger actually take place.

The Rheinmetall armament blows the blow to the European industry by forcing Leopard 2 -panzerschmiede Krauss -Maffei Wegmann (KMW). Rheinmetall confirmed that it had been discussing the possible acquisition of shares in KNDS, and thus indirectly by the KNDS subsidiary Krauss-Maffei Wegmann. KNDS is a joint venture between the KMW family of the Munich family and the French state-owned company Nexter. Types of cooperation with KNDS and KMW are also possible, explained Rheinmetall. The exit is open.

Düsseldorfer repeatedly expressed interest in competitors, including, inter alia, the armed infantry "Puma". KMW did not want to comment on the attack. Sometimes Rheinmetall shares gained more than six percent. According to internal data, both German companies were not able to agree on who should take the lead in previous attempts. KMW then turned to the French.

Gabriel supports the merger

Former Federal Minister of Economics Sigmars Gabriel spoke about the merger of the German armory. The German armaments industry also includes Thyssenkrupp, which companies Rheinmetall had previously registered. ThyssenKrupp, according to Oliver Burkhard, believes that it has a good position in this area, but does not rightly reject the negotiations on consolidation.

"By transforming Thyssenkrupp Marine Systems into a unified system of houses, by purchasing Atlas Elektronik, we invest in our sites and thus are firmly committed to international competition," explains the manager. "Therefore, the issue of consolidation with the French partner, raised in the media, is not a problem for us." Obviously, Burkhard was referring to speculation that Naval Group's French naval shipyard could again draw attention to the ThyssenKrupp Sea Area, well-known for submarines. "However, we have always said that we are ready to discuss the consolidation of European shipbuilding if it is economically viable and politically desirable," Burkhardt said. The Thyssen Group also announced that it is currently not involved in the negotiations on shipbuilding consolidation.

Nothing works without political agreement

Rheinmetall does not want to reveal KMW. "The management board of Rheinmetall AG is currently reviewing whether the transaction is legally realizable and economically viable and depends on a variety of political, economic and regulatory factors." Initially, the Federal Ministry of Economics has not recognized. The German defense industry is rather fragmented compared to US industry representatives such as Lockheed Martin. With around 6,000 employees, Thyssenkrupp focuses here primarily on submarines, squadrons and frigates.

The Rheinmetall Group has recently reached sales of around six billion euros, with nearly 24,000 employees. Approximately half of them took part in the armaments division with some 11,000 employees. KMW also has more than 4,000 employees in Germany, the United Kingdom, Turkey and the United States.



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